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Victoria PLC (GB:VCP)
LSE:VCP

Victoria (VCP) AI Stock Analysis

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Victoria

(LSE:VCP)

Rating:41Neutral
Price Target:
Victoria PLC's stock is currently underperforming due to significant financial and operational challenges, including declining revenues and high leverage. The technical analysis indicates a bearish trend with the potential for oversold recovery, while the valuation reflects its negative profitability. The recent appointment of a new CFO is a positive step, but substantial improvements in financial health and operational efficiency are necessary for a meaningful turnaround.

Victoria (VCP) vs. iShares MSCI United Kingdom ETF (EWC)

Victoria Business Overview & Revenue Model

Company DescriptionVictoria (VCP) is a leading global manufacturer and distributor of premium flooring products. The company operates across various sectors, including residential and commercial flooring, providing a wide range of products such as carpets, tiles, and luxury vinyl flooring. With a commitment to sustainability and innovation, Victoria delivers high-quality solutions tailored to meet diverse customer needs.
How the Company Makes MoneyVictoria (VCP) generates revenue primarily through the sale of its flooring products. The company's key revenue streams include direct sales to retailers, wholesalers, and end consumers, as well as partnerships with commercial builders and developers. Victoria's strategic focus on innovation and sustainability enhances its product offerings, allowing the company to maintain competitive pricing and customer loyalty. Additionally, Victoria leverages its global distribution network to expand market reach, further contributing to its earnings.

Victoria Financial Statement Overview

Summary
Victoria faces significant financial challenges, evidenced by declining revenues, negative profitability, and high leverage. The balance sheet reflects financial instability with negative equity, while cash flow issues highlight potential liquidity constraints. These factors collectively suggest a need for strategic improvements to stabilize the financial position.
Income Statement
45
Neutral
The company's revenue has declined in the recent year, with a negative net income indicating a lack of profitability. The gross profit margin is moderate, but the negative EBIT margin and net profit margin suggest operational inefficiencies. The revenue growth rate has been inconsistent, with recent declines posing a risk to financial stability.
Balance Sheet
30
Negative
The balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. Stockholders' equity is negative, reflecting financial instability and potential liquidity issues. The equity ratio is also unfavorable, highlighting concerns about the company's ability to cover its obligations with its assets.
Cash Flow
40
Negative
Cash flow analysis reveals a negative free cash flow, which poses a challenge for sustaining operations without external financing. The operating cash flow to net income ratio is not applicable due to negative net income, further emphasizing cash flow constraints.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue1.19B1.27B1.48B1.02B662.30M621.50M
Gross Profit345.50M390.80M402.30M324.60M208.10M201.40M
EBITDA-111.70M66.90M91.90M142.60M124.60M37.50M
Net Income-258.10M-108.00M-91.80M-12.40M2.80M-71.80M
Balance Sheet
Total Assets1.46B1.63B1.87B1.64B1.35B1.20B
Cash, Cash Equivalents and Short-Term Investments92.90M94.80M93.30M273.60M348.80M176.80M
Total Debt1.22B934.80M1.20B984.70M834.80M625.30M
Total Liabilities1.64B1.65B1.75B1.44B1.15B959.30M
Stockholders Equity-180.20M-22.20M119.00M202.60M208.20M240.60M
Cash Flow
Free Cash Flow-32.10M-7.30M-10.50M14.80M29.00M31.50M
Operating Cash Flow32.50M55.20M89.10M68.10M57.50M65.30M
Investing Cash Flow-3.70M-38.10M-218.60M-188.60M-45.70M-53.20M
Financing Cash Flow-36.50M-17.90M-41.10M30.40M163.00M100.00M

Victoria Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price67.90
Price Trends
50DMA
71.93
Negative
100DMA
85.70
Negative
200DMA
90.93
Negative
Market Momentum
MACD
-0.97
Negative
RSI
49.06
Neutral
STOCH
48.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VCP, the sentiment is Neutral. The current price of 67.9 is above the 20-day moving average (MA) of 66.85, below the 50-day MA of 71.93, and below the 200-day MA of 90.93, indicating a neutral trend. The MACD of -0.97 indicates Negative momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 48.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:VCP.

Victoria Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
£1.85B11.466.20%2.99%0.64%-17.57%
GBTPT
52
Neutral
£67.20M-93.27%0.05%6.55%-1914.81%
48
Neutral
£71.61M-12.15%6.45%-9.66%-425.03%
GBVCP
41
Neutral
£77.61M486.49%-11.73%-62.35%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:VCP
Victoria
67.90
-104.10
-60.52%
GB:HEAD
Headlam
89.20
-46.80
-34.41%
GB:TPT
Topps Tiles
34.20
-4.21
-10.96%

Victoria Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Victoria PLC Strengthens Leadership with New CFO Appointment
Positive
Apr 15, 2025

Victoria PLC has appointed Alec Pratt as a director and Chief Financial Officer Designate, effective immediately. Additionally, the company has granted him options over 1,666,666 ordinary shares under its 2022 Long Term Incentive Plan, with vesting scheduled over ten years. This strategic move is expected to strengthen Victoria’s leadership team and support its growth strategy, potentially enhancing shareholder value through improved financial management and execution of its business objectives.

Spark’s Take on GB:VCP Stock

According to Spark, TipRanks’ AI Analyst, GB:VCP is a Underperform.

Victoria PLC is currently facing significant financial challenges, with declining revenues, high debt levels, and cash flow constraints. The technical analysis suggests a bearish trend, though potential oversold conditions might offer some room for recovery. Valuation metrics indicate a lack of profitability and no dividend yield, reducing immediate investor appeal. Recent management changes could provide strategic benefits, but financial and operational improvements are crucial for a turnaround.

To see Spark’s full report on GB:VCP stock, click here.

Business Operations and Strategy
Victoria PLC Issues Shares Under Long-Term Incentive Plan
Neutral
Apr 4, 2025

Victoria PLC has announced the issuance of 289,264 ordinary shares to its employees as part of its long-term incentive plans. This move does not involve any company directors or managerial staff. The company transferred these shares from its treasury, leaving it with 10,881,391 shares in treasury and 114,583,276 shares in issue, excluding treasury shares. This issuance is part of Victoria’s strategy to enhance shareholder value by increasing earnings and cash flow per share.

Executive/Board ChangesBusiness Operations and Strategy
Victoria PLC Announces CFO Transition with Appointment of Alec Pratt
Positive
Mar 17, 2025

Victoria PLC has announced the appointment of Alec Pratt as the new Chief Financial Officer (CFO) Designate, succeeding Brian Morgan in June. Alec Pratt, who brings extensive experience from his previous roles at Deutsche Bank and J.P. Morgan, is expected to enhance Victoria’s management team and contribute significantly to the company’s continued growth and operational efficiency. This transition is part of Victoria’s broader strategy to strengthen its leadership and maintain its position as a leading player in the international flooring industry.

Executive/Board ChangesBusiness Operations and Strategy
Victoria PLC Announces New CFO Appointment
Positive
Mar 17, 2025

Victoria PLC has announced the appointment of Alec Pratt as the new Chief Financial Officer, succeeding Brian Morgan in June. Alec Pratt brings extensive experience from Deutsche Bank and other financial institutions, which is expected to bolster Victoria’s growth and operational efficiency. The transition is part of Victoria’s strategic plan to enhance its management team and continue its trajectory of growth in the international flooring market.

Business Operations and StrategyRegulatory Filings and Compliance
Victoria PLC Announces Change in Major Shareholdings
Neutral
Feb 5, 2025

Victoria PLC, a UK-based company, has announced a change in major shareholdings. The notification, submitted on February 4, 2025, reveals that Saqib Karim has increased his voting rights in the company to 7.00726911%, up from a previous position of 6.12770335%. This adjustment in shareholding reflects a strategic investment decision by Karim, potentially impacting the company’s governance and signaling confidence in its future prospects.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025